Trade imbalances are undesirable: a Note | E-Axes

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Trade imbalances are undesirable: a Note

date Date: February 1, 2017
date Author(s): Leon Podkaminer
date Affiliation: The Vienna Institute for International Economic Studies
This Note provides a very simple argument suggesting that the buildup of trade imbalances may be slowing down global output growth. The observed slowdown of global economic growth (since the mid-1970s) may have been a consequence of globalization-driven emergence of large and persistent trade imbalances.

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